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Exposing IDNG

21 Jun Exposing IDNG

Independence Energy Corp (IDNG) has been a hot stock for the past 4 months rising from $.45/share on February 23rd to $4.81/share today fueled by a change in control and a paid promotion led by the Bollinger Report (no affiliation to John Bollinger and BollingerBands.com) and a bunch of linked promotional sites.

I decided to research IDNG and what I found was not only very interesting, but was way deeper and surprising than I expected going in.

Independence Energy Corp (IDNG) started out as Oliver Creek Resources Inc.  In 2006, Oliver Creek Resources Inc went public with Bruce Thomson and his wife, Samantha as the sole officers of the shell.  Bruce held 1,000,000 shares which he received for $1000. After going public another 1,000,000 shares were sold to 28 different anonymous private investors at $.05/share for a total of $50,000 raised.

Oliver Creek Resources Inc never realized any revenues from its projects.

In August of 2008, Oliver Creek Resources Inc did a name change to Independence Energy Corp and a 12:1 forward split raising the outstanding share count to 24,000,000.

12,000,000 held by Bruce Thompson at a cost of $1,000 ($.0008/share) and 12,000,000 held by anonymous private investors at a cost of $50,000 ($.004/share).

Bruce Thomson devoted very little time to the success of the company (7 - 10 hours a week according to the filings) and IDNG continued to realize no revenues over the next 2 years.

Then in November 30, 2011, Gregory Rotelli entered the picture being assigned as a Director of IDNG.  Gregory Rotelli's background included stints as the CEO of 3 other penny stocks - TORO, RZOR, ROSV.  Rotelli also spent time as a stock promoter before that.  Back in 2003 - 2004, Rotelli was the president, secretary, and director of Direct Response Financial Services Inc (DRFL).  The CEO of of DRFL at the time was Ted Kozub (more on him later in this post).

Rotelli immediately brought some familiar acquaintances on board by signing an agreement on December 15, 2011 with Larry Wise (NTRO) for a small interest in some Oklahoma oil & gas wells called the Quinlan claims.

Prior to showing up in an agreement with IDNG, interest in oil & gas wells belonging to Nitro Petroleum Inc (NTRO) also were acquired by Lux Energy Corp (LUXE), Sunpeaks Ventures (SNPK), Toro Ventures Inc (TORO), Precision Petroleum Corp (PPTO), and Boundary Bay Resources Inc (BBRE).

Shortly after coming on board as a director, on January 24, 2012, Rotelli purchased all of Bruce Thomson's 12,000,000 shares for $50,000 ($.004/share) taking over full control of the shell and positioning IDNG for a future pump&dump.

Rotelli's first order of business besides increasing the IDNG's controlling interest in the Quinlan wells was setting up convertible debt Note agreements with an anonymous foreign entity probably belonging at least in part to the Shull family.  In exchange for capital, this anonymous foreign entity has been getting issued discounted free trading shares.  While the foreign entity collects these discounted free trading shares, a boiler room type promotional effort has been under way to manipulate the share price of IDNG stock up so that the insiders can maximize their profits when they finally choose to unload the bulk of their holdings.

On March 1, 2012, Rotelli issued 138,888 discounted  shares to his insider pals for $125,000 ($.90/share).

On March 15, 2012, Rotelli issued 100,000 discounted shares to his insider pals for $130,000 ($1.30/share).

On May 15, 2012, Rotelli issued 50,000 discounted shares to his insider pals for $125,000 ($2.50/share).

On May 24, 2012, Rotelli also entered into a toxic financing arrangement with his insider pals in which he will issue up to $1,000,000 worth of stock at a 90% discount to the market price based on the 5 most recent closing prices over the next 12 months.

On June 6, 2012, Rotelli issued 71,943 discounted shares to his insider pals for $200,000 ($2.78/share).

So far 360,831 shares have been issued to unnamed foreign insiders for $580,000 ($1.60/share)

As of today's close those 360,831 shares are worth $1,735,597

Rotelli's 12,000,000 shares are worth $57,720,000

The 28 seed shareholders 12,000,000 shares are worth $57,720,000.

Impressive, but not impressive enough.  Thus the upcoming 5:1 forward split.  While some of the seed shareholders have probably been slowly selling their holdings for large profits, I suspect that the insider(s) that contribute the capital for the discounted shares are probably holding tight.  They were probably already well aware of the plan to increase their holdings 5 fold way before the 5:1 forward split was announced to the retail investors.

Those 360,831 shares will become  1,804,155 shares after the forward split clears and then you'll probably see the real sell off begin.

IDNG added some agreements with MontCrest Energy Inc to help support the share price.  The insiders brought in an old favorite, Gerry Belanger (NSRS, MKIT, NCDL) to help run IR.

And a boiler room style promotional operation was started up to bring in investors for the stock.  A group of website all linked together by the same IP has joined forces to promoter IDNG including cold calling potential investors.

http://www.brightonmarkets.com/
http://www.bollingerreport.com
http://worldstreetfundamentals.com/en/home.htm
http://globalequityalert.com/en/home.htm
http://equitymarketsinc.net/
http://www.marketfoundations.com
http://equityleader.com
http://risingsunreport.com/

Just as an example how of the boiler room operations works, signing up for one of these websites required giving a phone number and a current stock of your choice to receive information.  After giving a ticker symbol (not IDNG) and a phone number a call back was received a short time later from (646) 389-1924 to discuss the symbol requested.  Research shows the phone number linking back to Mark Andrews from Brighton Markets.  It is a New York based number.  The brightonmarkets.com domain was just registered on June 22, 2011. They are engaged in promoting stocks for purchase on the stock market.Turns out Brighton Markets has been compensated $50,000 to promote IDNG.  It didn't take long for Mark Andrews to recommend IDNG during that phone call.

On top of the cold calls from Brighton Markets, there was a mailer put out by World Street Fundamentals (WSF).

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Connecting the Dots

Independence Energy Corp (IDNG) can be linked to the following group of companies:

Nitro Petroleum Inc (NTRO)
Rostock Ventures Corp (ROSV)
Lux Energy Corp (LUXE) (now known as SUNB)
Razor Resources Inc (RZOR)
Sunpeaks Ventures (SNPK)
North Springs Resources (NSRS)
Precision Petroleum Corp (PPTO)
Boundary Bay Resources, Inc. (BBRE) (now known as EMBA)
Toro Ventures Inc (TORO)
Endeavor Power Corp (EDVP)
Rarus Technologies (RARS)
Global Resources Energy Inc (GBEN)
Georgetown Corp (GTCP)
Impala Mineral Exploration Corp (IMXC) [formerly known as Harborside Ventures, Inc.]
Silica Resources Corp (SRCN)
Great Wall Builders (GWBU)

The main connections between these entities are the following individuals:

Robert Shull, Terry Shull, Patricia Shull, Leo Shull (the Shull Family)
Harry Lappa
Douglas Roe
Carrillo Huettel LLP
Gregory Rotelli
Larry Wise
Gerry Belanger

-----------------------------------------

This whole organization of pump&dump companies centers around the Shull Family and Nitro Petroleum Inc

SEC disclosure documents reveal that several Shull-related companies were significant shareholders of Nitro Petroleum Inc (NTRO). They included Paradisus Investment Corp., whose president is Patricia Shull; Zander Investments Ltd. of Nevis, of which Robert Shull is or was a director; and 658111 B.C. Ltd. whose president is Leo Shull, father of Robert and Terry Shull. (Leo Shull was involved in Fairmont share dealings, but not charged with any wrongdoing).

Credit to David Baines for the following history of the Shull family:

In 1998, a U.S. federal grand jury indicted Robert Shull and his brother, Terry, for allegedly manipulating the share price of Fairmont Resources Inc., which traded on the Alberta Stock Exchange.

As summarized by Canada Stockwatch, U.S. prosecutors alleged that the brothers manipulated Fairmont from 30 cents to $3.10 in early 1993. They also alleged that Robert paid secret commissions to U.S. brokers to induce their clients to buy the stock. The brothers then dumped their shares for combined profits of $560,000. The U.S. Department of Justice sought their extradition from Canada to the United States. A marathon court battle ensued, with the brothers finally surrendering to U.S. custody in October 2010.

That same month, Terry Shull pleaded guilty in a Boston court to two counts of securities fraud. As per his plea agreement, the judge ordered him to pay a $5,000 fine with no jail time.

In December 2010, Robert pleaded guilty and was sentenced to 168 days in a Boston halfway house and ordered to pay a $75,000 fine.

The SEC, meanwhile, filed a parallel civil suit against Robert, which he settled in 1996 by agreeing to disgorge $667,000 in ill-gotten gains and prejudgment interest.

With Shull family members at the helm, NTRO and companies directly connected to NTRO sold fractional interests in several dubious Oklahoma oil and gas properties, Barrhead, Alberta oil and gas properties, and Northern British Columbia oil and gas properties to several publicly traded shells to assist in the pumping and dumping of those publicly traded shells for insider enrichment.

----------------------------------------

Nitro Petroleum Inc (NTRO)

Leo Shull
Patricia Shull
Robert Shull
Larry Wise
Ted Kozub (DRFL)
Harry Lappa (NSRS, LUXE, GBEN, NTRO, EDVP)
Carrilla Huettel LLP (LUXE, NSRS, EDVP, RARS, GTCP, HDSI, MKIT, NCDL, and SNPK)
Shane Broesky (LUXE)
Sharon Farris (PPTO)
James Kirby (PPTO)
Gail Waters (ROSV)
Robert Banfield (SNPK)
Robert Seeley (GBTO, ROSV)
Miguel Adolfo de La Rosa (GBTO, ROSV)

In December of 2005, NTRO (which at the time was known as Ingenium Capital Corp) changed hands.  Ted Kozub purchased controlling interest of the shell.  Shortly after taking control Kozub issued a bunch of debt Notes to the Shull family. Back in January and February of 2006, the NTRO shell borrowed a bunch of money from a group of foreign entities all controlled by members of the Shull family kicking off what has become over 6 years of market manipulation and insider enrichment by this group and their colleagues.

On December 18, 2006, NTRO acquired three oil leases in Oklahoma for $250,000. The funding for this acquisition was derived from a private placement of 500,000 shares of common stock and warrants to purchase 500,000 of common stock to Bridge Capital Inc., a private anonymous offshore corporation.  Some of the wells purchased in this arrangement included the Quinlan wells which would get split up among many public shells controlled by the very same insiders behind NTRO.

On February 21, 2007, Larry Wise took over as the CEO of NTRO.  Larry Wise is the owner of Wise Oil & Gas Company LLC.  Wise would settle all of the debts owed to the Shull family through a series of settlement agreements signed on December 5, 2008.

658111 BC Ltd - Leo Shull
Paradisus Investment Corp - Patricia Shull
Zander Investments Ltd - Robert Shull
Takam International Ltd - Gail Waters
Tucker Investments - Robert Banfield (aka Robert Bandfield)
HB International Ltd - Miguel Adolpo de La Rosa (aka Miguel Adolfo de La Rosa)
Highlight Holdings Ltd - R. Seeley (aka Robert William Seeley)

Prior to the Shull family getting involved, NTRO traded as high as $4.25 during the first quarter of 2006.  NTRO now trades at a pitiful $.0065/share.

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Boundary Bay Resources, Inc. (BBRE) (now known as EMBA)

Rocco Di Fruscia (GWBU)
Roger Boileau (GWBU)
Harry Lappa (NSRS, LUXE, GBEN, NTRO, EDVP)
Diane Dalmy
Lee Borschowa (SRCN)

 In 2008, BBRE signed agreements with NTRO for small interest in some of their oil & gas wells.

The stock went from $.80/share in the fall of 2011 to only $.0032/share today.

---------------------------------------

Toro Ventures Inc (TORO)

Gregory Roselli (ROSV, RZOR, DRFL, IDNG)

In February of 2008, TORO announced that it has signed an agreement with NTRO for some interest in some oil & gas wells

Later that same year on December 20, 2008, Gregory Roselli became the CEO, president, secretary, and director of TORO.

TORO never filed another financial statement after that and is now 3 years delinquent in its filings and could soon face revocation.  The stock has fallen from over $.35/share in 2008 to $.01/share today.

--------------------------------------

Precision Petroleum Corp (PPTO)

Sharon Farris (NTRO)
James Kirby (NTRO)
Diane Dalmy

In March of 2008, PPTO filed an S-1 to go public under the name Tidewater Resources Inc.  The attorney that filed the legal opinion for the shell was banned SEC attorney, Diane Dalmy.

After going public, in September of 2008, Sharon Farris of NTRO took over control of the shell.

In January of 2009, PPTO signed an agreement with NTRO for some interest in some oil & gas wells.

PPTO would also purchase 22% interest in the Quinlan #1 well, .28% interest in the Quinlan #2 well, and 8.77% interest in the Quinlan #3 well.

James Kirby of NTRO was brought on board as an officer.

A couple of foreign entities were set up with large blocks of shares - Stonehurst Limited of Seychelles and Terra Equity LLC of Nevis.

PPTO was promoted and hit over $.81/share in June of 2009.  The stock now trades at just $.0016/share.

--------------------------------------

Sunpeaks Ventures (SNPK)

Mackie Barch (HDSI, GTCP)
The Shull family
Carrillo Huettel, LLP
Douglas Roe (LUXE, GBEN, NTRO, GTCP, IMXC, SRCN)

In December of 2008 while preparing to go public, SNPK signed an agreement with NTRO for some interest in some oil wells.

SNPK was an AwesomePennyStock (APS) play and hit a high of $2.40/share on April 14, 2012.  Today it is trading at $.05/share.

More on how the Shull family helped to set up the Sunpeaks Ventures shell here.

--------------------------------------

Lux Energy Corp (LUXE)

Douglas Roe (SNPK, GBEN, NTRO, GTCP, IMXC, SRCN)
Harry Lappa (NSRS, BBRE, GBEN, NTRO, EDVP)
Shane Broesky (NTRO)
Carrillo Huettel LLP (NSRS, EDVP, RARS, GTCP, HDSI, MKIT, NCDL, and SNPK)

The LUXE shell is probably the most similar to IDNG.  It follows many similar patterns and steps.

On May 22, 2009, the Shull family planted Shane Broesky as the CEO of LUXE.  A 5:1 forward split was executed and the name of the shell changed to Lux Energy Corp.  In August of 2009, Shane Broesky would become the sole officer of the shell and take full control by purchasing 15,000,000 shares for $50,000.

In June of 2009, LUXE did the first of three agreements with NTRO for partial interest in wells that NTRO controlled.

In September of 2009, LUXE would do the second of three agreements with NTRO for partial interest in wells that NTRO controlled.  This time LUXE acquired .011% working interest in the Quinlan #2 well from Harry Lappa for $14,000.

In November of 2009, LUXE would to yet another forward split.  This time a 3:1 forward split.

In February of 2010, LUXE did the third of three agreements with NTRO for partial interest in wells that NTRO controlled.

LUXE hit a high of over $.70/share during the last quarter of 2009, but because most of the acquisitions were paid for with debt notes (not cash) which eventually led to dilution and insiders dumped during the promotions, LUXE crashed down in value and in October of 2011 the shell did a 1:1000 reverse split.  Now under its new symbol SUNB the shell trades at $.01/share.

More on how Shane Broesky helped David Baines expose the Shull family connection to many of these shells in this post.

----------------------------------------

Rostock Ventures Corp (ROSV)

Gregory Rotelli
Carrillo Huettel LLP
The Shull family
Andrew Godfrey
Gail Waters
Robert Seeley
Miguel Adolfo de La Rosa

Rostock's S-1 filing was made effective in September of 2008.

In June of 2009, the same 7 entities (with ties to the Shull family) bought up control of the ROSV shell.

This time Tucker Investments was signed for by Andrew Godfrey.  More about Godfrey here.

On October 23, 2009, Louis Carrillo of Carrillo Huettel LLP (which was already acting as the legal counsel for the shell) was appointed as the new CEO of ROSV

The Shull family held their shares for 2 years (probably as a requirement). Then in the summer of 2011, a paid promotion was run on the stock and the insiders all dumped their shares.

Louis Carrillo resigned as the CEO in the spring of 2011 (just ahead of the pump&dump), but Carrillo Huettel LLP remains the legal counsel for the shell even today. Louis Carrillo was replaced by Gregory Rotelli.

Rotellis almost immediately signed a agreements to start issuing shares for capital/debt to anonymous foreign entities.

ROSV peaked at $.11 in the summer of 2011 before dropping to under $.01/share.  Recently ROSV made a short comeback thanks to the success of IDNG caring over into the Rotelli shell.  More past research here.

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It has been an impressive run for IDNG and quite a few investors were given an opportunity to cash in their holding for a nice profit.  The connections to IDNG are wide spread and dirty.  Most people realize that IDNG is a pump&dump and it will eventually crash.  It is the ones that don't realize this that will get hurt the most.  No shell connected to this large group of insiders has ever fared well in the long run and since IDNG has climbed higher than most it will have much further to fall.  The big questions is when.  My guess is immediately following the forward split.

 

 

 

10 Comments
  • source
    Posted at 18:12h, 22 June Reply

    Hey there, I just hopped over to your web site via StumbleUpon. Not somthing I would generally browse, but I liked your thoughts none the less. Thank you for creating something worthy of reading through.

  • Pat
    Posted at 12:56h, 28 June Reply

    NoDummy you nailed this. The last sentence on this writeup was dead on. From what I understand the rest of the shares finally cleared today.

    • Geoff Carroll
      Posted at 12:41h, 13 October Reply

      *Pat, 

      Like you, burned by IDNG, like you, a full-time job contributed. The ‘freeze” imposed on selling by my discount broker til it was too late was accompanied by verified trading going on and noted on broker’s site!Therefore, I couldn’t dump. I’m contemplated action against the broker. Email me at [email protected] if you get this reply. “Two heads are better than one”.. Recouping may be a longshot but not impossible 

  • Desert Dog
    Posted at 14:33h, 29 June Reply

    By far the best research I have read on a pump and dump stock. Hate to say I got burnt sleeping on the job. Meant to get out before the split yet waited until the day of and the shares were locked up. Damn my full time job!
    Question? Who is buying up the millions of shares that have traded since the price has reached the low teens?

  • davidsf
    Posted at 19:50h, 29 June Reply

    I somehow played this one just right. It seemed to be a pump and dump as the fine print in the Bollinger promotions stated that they were substantially paid for each newsletter. Since I didn’t know when the “dump” would happen I bought in and sold a few days later then bought in again and sold again several times. Would have made more money obviously if I had bought and held until the 5:1 split. I realized that split was the time to get out so I did so one day before it occurred. I invested substantial amounts and made a total of $149,173 in less than one month. I feel sorry for those who lost but a 5:1 split made no sense for a stock selling for less than $5 and that should have been an obvious clue to this being a pump and dump.

    • Desert Dog
      Posted at 23:41h, 29 June Reply

      D, I think you put a comma in the wrong place. 😉

      Nice work…for a month.

  • Dukens Chery
    Posted at 06:26h, 09 September Reply

    Great research. I too received an email from the group called equityleader.com. I do not know who they are, therefore I was reluctant to buy into IDNG, I had a feeling this was a pump-and-dump case, and I was right.
    Indeed IDNG crashed right after the forwar split, last I checked, the stock has no value.
    They are right back at it. Just last Friday equityleader.com sent me an email promoiting PUNL.

  • Dukens Chery
    Posted at 06:27h, 09 September Reply

    Warning! Warning! Warning! Beware of these Pump-and-Dump promotions out there.

    May 5th I received this email from a group called equityleader.com:

    “Dear Members,

    The wait is finally over! After 6 months of research, sorting through hundreds of potential companies, all with very strong merits unto their own, there was one that stood out as a clear bellwether: Independence Energy Corp. (IDNG).

    IDNG is positioned to see explosive growth in its market, and the price is definitely right!

    We have taken extensive time to check sources, facts and perform in-depth market research. Today, we are confident to release IDNG as our next big pick.

     

    Our Next Top Quarter Pick is: IDNG
    Effective: 4:01 PM EST May 4, 2012 for Q2 2012

     

    Sector: Oil & Gas
    Technical: +95 Strong Uptrend
    Fundamental: +97 Strong Growth Potential

    Key Information
    Public Float: 3 million
    Outstanding: 24 million
    Insider Ownership: 12 million”.

    They pumped the stock up to $5 and dumped it on people. I am not a fan of penny stocks, so I never had any intentions to buy into that stock in the first place, and I do not know who they (equityleader.com) are. There was no way I was going to let them get me into buying into the stock without knowing who they are, but I am sure they managed to convince people to buy into the stock. Last time I checked, this thing (IDNG) worth nothing. I think they have got a whole lot of people though. Their plan worked so well, they are now back again after your hard earned money. Last week Friday they have started a brand new promotion, they are pumping a new stock (ticker symbol PUNL) to soon dump it on you.

    Be careful out there investors. You have worked too hard to earn yours, please do not let them fool you again.

    This is the email I received from them last week Friday:

    “Dear Members,

    The wait is finally over! After 6 months of research, sorting through hundreds of potential companies, all with very strong merits unto their own, there was one that stood out as a clear bellwether: Punchline Resources Ltd. (PUNL).

    PUNL is positioned to see explosive growth in its market, and the price is definitely right!

    We have taken extensive time to check sources, facts and perform in-depth market research. Today, we are confident to release PUNL as our next big pick.

    Our Next Top Quarter Pick is: PUNL
    Effective: September 7, 2012 for Q4 2012

    Sector: Gold & Mining
    Technical: +94 Strong Uptrend
    Fundamental: +98 Strong Growth Potential

    Key Information
    Public Float: 4 million
    Outstanding: 50 million
    Insider Ownership: 30 million”.

  • skitty poop
    Posted at 12:55h, 06 October Reply

    Awesome post! I will keep an on eye on your blog.

  • Burned
    Posted at 22:06h, 12 February Reply

    I got a tip from a buddy saying I should jump on this stock. I bought in with a good chunk of money and saw this thing rise day after day. I’m just a regular guy who is not a professional trader. I had never even heard of a scam like this until it was too late. The split came, my shares were locked (which is total BS because someone was out there allowed to sell) and I just had to sit back and watch my money go down the toilet.
    Is there no way to sue these people?!? This seems completely illegal and I can’t be the only one that got hit hard by this.

    What can be done?

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